For most people, the idea of owning real estate is a big move. For this to go smoothly, a lot of things need to be put in place. One of these is the title company. The role of a title company when getting involved in a real estate transaction cannot be overemphasized.
During a real estate transaction, a title company acts as a form of insurance agent for all the parties involved – the buyer, the seller, even the insurance company. Below are a few of the roles played by a title company during a real estate transaction.
This is one of the most important roles the title company plays during a real estate transaction. To understand how important this is, we have to look at what a title is. A title includes all the legal rights and equitable interests on a particular real estate. This includes the buyer and seller of the property, as well as the dates these transactions are made.
The title company now searches the history of these rights and interests to see if there are any defects. Through the title search, you can quickly note any issue concerning the real estate property you want to buy.
When the title search has been done and found to be valid without any issue, the title company goes further by insuring your property against any unforeseen or overlooked issue. This is not uncommon. No matter how intensive the search is, issues may arise, threatening the buyer’s claims and rights. But with the help of the title company, this is effectively prevented and the homebuyer is protected.
Settlement And Closing
With all the information gathered and the insurance in place, the title company may then move on to the settlement stage. The title company sees to the smooth transfer of title, acting as an escrow officer until all processes are completed.
The title company also serves as the closing agent, acting as the mediator between the buyer and the seller. With the help of the title company, all documents involved in a real estate transaction will be duly distributed, signed, and recorded without any hassle.
A title company takes a huge burden off the shoulders of a homebuyer. So, when issues come up, you don’t have to bear the brunt. The title company has taken care of it all.